What is Financial Literacy?

Financial literacy — our future depends on it.

Before kids can read, they have to understand a few basic components and how they connect. The marks that form letters. Letters that form words. Words that form sentences and paragraphs. Only after grasping these concepts can kids pick up a book and understand the power of its pages.

The same principle applies to financial literacy. Kids need to understand the basics in order to become successful adults who handle money wisely. Unfortunately, too many young people aren’t learning these lessons at school, at home or anywhere else. Because their future—and the future of the communities, cities and country they will lead one day—depends on it.

The Facts Are Frightening!

84%

of college students have credit cards

50%

have more than four!

(National Financial Educators Council)

The fastest-growing segment for bankruptcy – people age

18-25

(National Financial Educators Council)

23-28

year olds in the US could answer 3 simple finance questionsabout interest rates, inflation and risk diversification

(Lusardi, Mitchell, & Curto, 2010)

According to a 2008 survey, only

27%

of youth knew what inflation was and could do simpleinterest rate calculations.